BP’s liability still an issue in Senate race

Jeremy AlfordCapitol Correspondent

Published: Thursday, October 21, 2010 at 10:48 a.m.

Last Modified: Thursday, October 21, 2010 at 10:48 a.m.

BATON ROUGE — With less than two weeks until the Nov. 2 general election, Congressman Charlie Melancon is taking incumbent U.S. Sen. David Vitter to task over BP’s liability in the wake of the Deepwater Horizon rig explosion.

The rig flowed freely into the Gulf of Mexico for about three months and created a temporary shutdown of deepwater exploration.

As of Oct. 1, BP had spent $2.35 billion on payments, largely related to cleanup efforts, and the energy giant has set aside $20 billion for claims, although as much as $30 billion may be needed.

Right now, there’s a $75 million cap on liability in current federal law — the Oil Pollution Act of 1990 — but Vitter, a Metairie Republican, filed legislation earlier this year to increase that cap to $150 million.

While Vitter contends he wanted BP to pay more money than they would have under the current law, Melancon, a Napoleonville Democrat who represents Terrebonne and Lafourche parishes in the U.S. House, doesn’t think there should be a cap at all.

It’s among the few issues that have persisted throughout this year’s U.S. Senate contest.

Last week, Melancon launched two 30-second television commercials accusing Vitter of looking out for BP’s financial interests, but they don’t mention Vitter’s other bill — Senate Bill 3410 — which would have established an unlimited cap for BP.

Instead it focuses on the first bill, Senate Bill 3375, which would set a ceiling of $150 million for liabilities.

Melancon also takes credit in the spots for “passing the only bill lifting the job-killing drilling moratorium, voting to remove all caps on BP’s liability and working to help Louisiana clean up and recover from the spill.”

Citing recent comments by a BP attorney indicating that BP would seek to invoke the previously established liability cap, Melancon was back on the issue this week by asking Vitter to withdraw his $150 million bill.

Quoting a report from CourthouseNews.com, Melancon said that the current law could cap BP’s liability at $75 million even though representatives of the company have repeatedly promised to pay “all legitimate claims.”

After everything coastal Louisiana has been through this year, Melancon said that isn’t good enough.

“It should be obvious to anyone who has been paying attention that BP is going to try to hide behind any cap on liability whether it’s the current $75 million or David Vitter’s bill that caps BP’s liability at $150 million,” Melancon said. “David Vitter should immediately withdraw his bill to bail out BP. I’m opposed to any liability cap and I’ve been fighting to make sure BP pays for 100 percent of the damage they’ve caused.”

Before the oil leak was even capped, Melancon said Vitter’s “first instinct was to protect BP.”

That’s why he said Vitter introduced a bill that tied liability after a spill to $150 million, or the company’s last four quarters of profits, whichever is greater.

However, BP lost money in the last four quarters, so Vitter’s bill would have capped their liability at only $150 million, Melancon said.

As for Vitter, he’s warning Melancon not to be so hasty.

He cites an article published Tuesday by The Times-Picayune stating that “BP affirmed its pledge not to invoke the $75 million liability cap in the Oil Pollution Act of 1990 in court Monday, but warned that other corporate defendants in the litigation over the Gulf of Mexico oil spill may not necessarily do the same.”

Vitter said that means the cap issue is no longer on the table — and no longer a real issue.

“I’m really pleased that BP’s agreement to waive the liability cap is now legally binding,” said Vitter, referring to his legislation that had no cap at all, Senate Bill 3410. “I’ve been pushing for this same outcome with my bill to require the Interior Department to accept the offer to waive the cap completely, and I’m glad that the liability process can move forward with a clear understanding that BP will be on the hook for damages resulting from the spill.”

<p>BATON ROUGE — With less than two weeks until the Nov. 2 general election, Congressman Charlie Melancon is taking incumbent U.S. Sen. David Vitter to task over BP's liability in the wake of the Deepwater Horizon rig explosion.</p><p>The rig flowed freely into the Gulf of Mexico for about three months and created a temporary shutdown of deepwater exploration.</p><p>As of Oct. 1, BP had spent $2.35 billion on payments, largely related to cleanup efforts, and the energy giant has set aside $20 billion for claims, although as much as $30 billion may be needed. </p><p>Right now, there's a $75 million cap on liability in current federal law — the Oil Pollution Act of 1990 — but Vitter, a Metairie Republican, filed legislation earlier this year to increase that cap to $150 million.</p><p>While Vitter contends he wanted BP to pay more money than they would have under the current law, Melancon, a Napoleonville Democrat who represents Terrebonne and Lafourche parishes in the U.S. House, doesn't think there should be a cap at all. </p><p>It's among the few issues that have persisted throughout this year's U.S. Senate contest.</p><p>Last week, Melancon launched two 30-second television commercials accusing Vitter of looking out for BP's financial interests, but they don't mention Vitter's other bill — Senate Bill 3410 — which would have established an unlimited cap for BP. </p><p>Instead it focuses on the first bill, Senate Bill 3375, which would set a ceiling of $150 million for liabilities. </p><p>Melancon also takes credit in the spots for “passing the only bill lifting the job-killing drilling moratorium, voting to remove all caps on BP's liability and working to help Louisiana clean up and recover from the spill.” </p><p>Citing recent comments by a BP attorney indicating that BP would seek to invoke the previously established liability cap, Melancon was back on the issue this week by asking Vitter to withdraw his $150 million bill. </p><p>Quoting a report from CourthouseNews.com, Melancon said that the current law could cap BP's liability at $75 million even though representatives of the company have repeatedly promised to pay “all legitimate claims.”</p><p>After everything coastal Louisiana has been through this year, Melancon said that isn't good enough.</p><p>“It should be obvious to anyone who has been paying attention that BP is going to try to hide behind any cap on liability whether it's the current $75 million or David Vitter's bill that caps BP's liability at $150 million,” Melancon said. “David Vitter should immediately withdraw his bill to bail out BP. I'm opposed to any liability cap and I've been fighting to make sure BP pays for 100 percent of the damage they've caused.”</p><p>Before the oil leak was even capped, Melancon said Vitter's “first instinct was to protect BP.”</p><p>That's why he said Vitter introduced a bill that tied liability after a spill to $150 million, or the company's last four quarters of profits, whichever is greater. </p><p>However, BP lost money in the last four quarters, so Vitter's bill would have capped their liability at only $150 million, Melancon said. </p><p>As for Vitter, he's warning Melancon not to be so hasty. </p><p>He cites an article published Tuesday by The Times-Picayune stating that “BP affirmed its pledge not to invoke the $75 million liability cap in the Oil Pollution Act of 1990 in court Monday, but warned that other corporate defendants in the litigation over the Gulf of Mexico oil spill may not necessarily do the same.” </p><p>Vitter said that means the cap issue is no longer on the table — and no longer a real issue.</p><p>“I'm really pleased that BP's agreement to waive the liability cap is now legally binding,” said Vitter, referring to his legislation that had no cap at all, Senate Bill 3410. “I've been pushing for this same outcome with my bill to require the Interior Department to accept the offer to waive the cap completely, and I'm glad that the liability process can move forward with a clear understanding that BP will be on the hook for damages resulting from the spill.”</p><p>Capitol Correspondent Jeremy Alford can be reached at </p><p>jeremy@jeremyalford.com.</p>